What is A Car Servicing Plan & How Does It Work?

In the car serving plan, you need to pay upfront at a fixed price for future car maintenance. It starts before the first Car Service Coalville and runs for two to three years, you either pay monthly interest-free instalments or a lump sum amount. 

Car manufacturers offer convenience, peace of mind, a discount on paying at the time and protection against rising oil and labour costs during the time of the plan.

Depending on the service plan you choose and the provider you go with, you may be tied into a particular garage for servicing, or you may have the option to service your car with the franchised service centre from the manufacturer. 

If you are using a new or nearly new car for the usual three years of a standard warranty period, most people choose to go back to the same dealership they bought it from and service their car once a year. 

Are People Taking Car Service Plans?

Most of the people do seem to like service plans. EMaC administers new and used car service plans for 16 manufacturers including BMW, Vauxhall and Jaguar Land Rover, plus most large UK dealership groups and some non-dealers such as Halfords offer car service plans.

It’s currently operating 2.2 million live contracts and sells more than half a million each year. They provide and operate the software tailored for each client, deal with the customer paperwork and provide call centre support from many staff.

For the manufacturer and dealer, the appeal for service plans is a fixed future service revenue model and retaining its customers who have shopped around for the next service. With this service plan model, the dealer knows that the customer will visit once a year guaranteed with another car at some point. 

Customers use the service plan as a budgeting tool in the way that they can pay a fixed amount monthly by automatically debiting from their bank account and won’t get hit with a large bill.

The comparison of new car service plan prices isn’t useful because the parts and labour costs may differ by manufacturer and the model type of the car.

Those who are looking through the internet face difficulties as some car makers publish an upfront price on their official websites, while others ask you to provide details of your specific car and mileage to get an individual quote. But, you can divide them into two tyres that are freestanding and attached to finance.

Will A Car Service Plan Save You Money?

Yes, if you know prices are going up in the future and the savings and discounts are clear based on individual standard service costs published at the time you opt for the pan out. However, there are still some differences in the hourly labour rates charged in the different parts of the UK. In some major cities, the labour charge is higher such as London and Birmingham.

Service plans even have some differences but they have the same upfront cost for all. For example, a Mercedes will cost the same to service in Coventry as it does in Inverness.

But, service plans are more convenient and avoid a bigger bill than getting discounts or lower prices. The amount you pay to service a new car over three years is small compared to the unseen thousands of pounds it will lose in depreciation or the interest payments on a PCP agreement.

Are Service Plans Credit Agreements?

No, service plans are not credit agreements and it is not regulated by the Financial Conduct Authority (FCA). You won’t be asked to undergo a credit score check and you have the option to cancel a plan and get a refund of unspent money at any point. 

What is Included in A Service Plan & What Isn’t?

On a fixed service schedule, there are some specific parts which are replaced at each annual service. The most common examples are the engine oil, filters and cabin pollen filters. Every two years your car brake fluid and filter will be replaced.

This replacement cost is covered in the service place because they will be the same for the same type of car at the same interval. But you need to pay for extra amount for any wear and tear items such as brake pads, discs, windscreen wipers and tyres. These things are mentioned in the terms and conditions.

What If I Go For Flexible Servicing?

All the service plans we have discussed so far in this article are annual or fixed mileage intervals. This traditional type of servicing is for private buyers, but some makes which are often sold to high-mileage business drivers have for a long time offered flexible or condition-based servicing.

New engine oils in modern cars offer steady daily miles where the engine is fully warmed up and under less pressure, these types of cars don’t need annual oil changes. 

For example, an Audi on a flexible servicing schedule only needs to be serviced every 18,600 miles or every two years. There are other brands of vehicles such as Volkswagen, Skoda and SEAT that offer flexible service intervals.

Conclusion

At last, whichever service plan type you choose, all of them are focused on improving the overall performance and safety of your car. Car Service Coalville at regular intervals also gives your car the best chance to pass its MOT.